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How Poverty Makes Workers Less Productive

"The authors conclude that giving workers cash upfront helped alleviate the mental burden of their financial problems and freed them to be more productive. It echoes findings from other studies on the psychological consequences of poverty, but it is novel because it looked at the effects of it at a real job rather than in a laboratory setting.

Given the emerging body of evidence that suggests the cognitive load of poverty hurts low-income folks' ability to escape their circumstances, the authors argue that policymakers should consider reshaping welfare programs with these psychological issues in mind. Giving poor people cash without conditions, for example, could do a lot to help them earn more cash on their own."

https://www.npr.org/sections/money/2021/02/02/961910289/how-poverty-makes-workers-less-productive